3 ms·

I'll add: in practice its goal is not to solve a problem, but to create a need.

• ulrikrasmussen 2y ago
  Good point. I suppose the theoretical utility of advertisement is to supply information to consumers about what the market offers so consumers can seek out suppliers that fulfill their demands. Supplying that kind of information to consumers provides utility for both the supplier and the consumer. This goal can also be accomplished without unsolicited advertisement but using directories where consumers can look up suppliers based on their needs. Unsolicited advertisement tries to induce a sense of demand in consumers which they didn't have to begin with. This is done using many different tactics, e.g. by disguising the true cost, exaggerating the benefits or simply misinforming. This tips the utility in favor of the supplier while making it harder for the consumer to navigate the market.